The Nationalist Party has asked the Auditor-General to investigate what led the government to pay €4.2 million to Cities Entertainment Ltd for the repossession of the former Cafe’ Premier in Valletta.

The request was made by the members of the Opposition on the Public Accounts Committee – Tonio Fenech, Jason Azzopardi, Claudio Grech and Kristy Debono.

The premises, owned by the government, had been granted to Cities Entertainment Ltd on emphyteusis in 1998.

In January last year the Lands Department agreed to buy back the 65-year emphyteusis of the closed-down cafeteria located in a prime site of the capital. However, eyebrows were raised when it transpired that the owners had their debts wiped out from tax-payers’ money.

These included an outstanding loan of some €2.5 million with Banif Bank, as well as income tax and VAT arrears, pending energy bills, ground rents and a number of creditors.

A government spokesman in comments to Times of Malta had justified the deal, saying it was in line with its policy not to have establishments which could endanger priceless documents of historical value housed in the Bibliotheca, which is located in the upper floors of the same building. He added that the acquisition of this site would also help improve public accessibility.

The PN said the government wanted to re-take possession of the property, it could have easily instituted a court case to annul the emphyteusis in view of the arrears due, the PN said.